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Post and Telecommunication-related Matters Act, 1958 (Act No. 44 of 1958)

Chapter IB : Staff and Pension Matters

8. Transfer to successor company

 

 

(1) Any officer or employee of the department performing functions pertaining to the postal service or the telecommunications service, and who—
(a) elects to become an employee of a successor company, shall, if he notifies the department in writing of his election prior to the applicable transfer date, notwithstanding the provisions of the Post Office Service Act and without interrupting his service, from the postal transfer date or the telecommunications transfer date, as the case may be, become an employee in a similar post in the postal company or the telecommunications company, respectively, subject to conditions of employment which shall not be less favourable than those applicable to him on the date immediately preceding the applicable transfer date;
(b) does not in terms of paragraph (a) elect to become an employee of a successor company, shall, notwithstanding the provisions of the Post Office Service Act, but subject to the conditions determined by the Staff Management Board referred to in section 4 of the Post Office Service Act with the concurrence of the Minister, from the postal transfer date or the telecommunications transfer date, as the case may be, be seconded to the postal company or the telecommunications company, respectively, there to perform services in a post similar to the post occupied by him in the department, but such officer or employee shall while he is so seconded remain subject to the laws governing officers and employees of the department.

 

(2) If, for the purposes of subsection (1), the question arises whether any person performs functions pertaining to the postal service or the telecommunications service, such question shall be decided by the Director-General.

[Subsection (2) substituted by section 20 of Act No. 88 of 1996]

 

(3) If any person seconded in terms of subsection (1)(b), after the applicable transfer date elects to become an employee of the successor company to which he has been seconded, he shall, notwithstanding the provisions of the Post Office Service Act, and without interrupting his service, from a date determined by the successor company concerned after consultation with the chief actuary, become an employee of that company in a post similar to the post occupied by him while being so seconded, subject to the conditions of service of that company: Provided that where such election is made more than one year after the applicable transfer date, the successor company concerned shall not be obliged to employ such officer or employee.

 

(3A) Notwithstanding the proviso to subsection (3), any person referred to in the said proviso who on the date of commencement of the Post Office Second Amendment Act, 1993, has not been employed by the successor company concerned to which he has been seconded, shall, from a date determined by the Minister, become an employee of such successor company in accordance with the provisions of this section.

[Subsection (3A) inserted by section 1 of Act No. 176 of 1993]

 

(4) For the purposes of the provisions of the Income Tax Act, 1962 (Act No. 58 of 1962), it shall be deemed that no change of employer took place when employment is taken up at a successor company by officers and employees in terms of subsections (1) and (3) and that the position of officers and employees in respect of the phasing in of any tax levied on benefits or advantages derived by reason of employment or the holding of any office as contemplated in Schedule 7 to the Income Tax Act, 1962, shall remain unchanged.

 

(5) When any officer or employee of the department becomes an employee of a successor company in terms of subsection (1) or (3)—
(a) he shall retain all vacation and sick leave which on the date immediately preceding his employment by the successor company stands to his credit with the department, including all monetary benefits attached thereto;

(b)

(i) any enquiry or other action instituted or contemplated in respect of alleged misconduct committed by such officer or employee prior to his employment by that successor company, shall be disposed of or instituted by such company and such company shall take steps against the officer or employee concerned if he is found guilty of misconduct, in terms of the laws applicable to him before such employment;
(ii) for the purpose of subparagraph (i) any reference in the laws contemplated in that subparagraph, to—
(aa) the minister, shall be construed as a reference to the chairman of the board of directors of the company concerned;
(bb) the Staff Management Board, shall be construed as a reference to he management board of such company;
(cc) the Director-General, shall be construed as a reference to the managing director of such company;
(dd) the department, shall be construed as a reference to the company concerned;

[Paragraph (b) substituted by section 7 of Act No. 101 of 1992]

(c) he shall cease to be a member of any pension fund to which he was in terms of section 44 of the Post Office Service Act compelled to belong on the date immediately preceding the date of his employment by the successor company concerned, and shall have no claim against the pension fund concerned;
(d) he shall become a member of the postal pension fund in the case of the postal company or of the telecommunications pension fund in the case of the telecommunications company as from the date of his employment by the successor company concerned;
(e) the pension fund referred to in paragraph (c) shall pay to the postal pension fund or the telecommunications pension fund, as the case may be, an amount, whether in cash or in specie, equal to the percentage funding multiplied by the actuarial liability of the fund in respect of that officer or employee on the date of his employment by the successor company concerned, plus interest thereon calculated at the bank rate from the date until the date of payment thereof, and any claim which that pension fund may have against such officer or employee shall pass to the postal pension fund or the telecommunications pension fund, as the case may be.

 

(6) For the purposes of subsection (5)(e)—
(a) the actuarial liability of a pension fund in respect of a particular liability of the fund in respect of such member or group of members of the fund as determined by the chief actuary and an actuary appointed by the Minister of National Health and Population Development;
(b) the percentage funding of a pension fund shall be the market value of the assets of the und expressed as a percentage of the total actuarial of the fund as determined at the time of the most recent actuarial evaluation of the fund or any revision thereof made in the instructions of the Minister of National Health and Population Development;
(c) the bank rate shall be the rate at time to time determined in terms of section 10(2) of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989).

 

(7) Any staff association recognized by the Minister as contemplated in section 43(1)(b) of the Post Office Service Act immediately prior to the postal transfer date or the telecommunications transfer date, shall be recognized by the successor company concerned.

 

[Section 8 inserted by section 7 of Act No. 85 of 1991]

 

 


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